Question

While preparing the trading account the purchases returns are deducted from the purchases mainly because of?

Answer 1

For this 'Ledger' is the most important book of accounting. It contains summarized, classified description of all the business transactions. It is divided into different parts and each part is termed as 'account'. It is necessary to gather at one place all transactions, during the period, relating to a particular subject-a person, a thing, a class of expenses, incomes etc. It is only then the bet results can be ascertained.